On December 2, 2025, at approximately 4:36 AM PST, our primary US email sending account with Sparkpost/Bird was suspended, causing all outgoing email to be held. US customers who rely on email for security and access, specifically those needing to perform password resets or log in using Time-based One-Time Password (TOTP), were unable to complete these actions. This issue resulted in the delay of over a million emails. The incident was declared at 6:04 AM PST, and the issue was resolved and the held email queue was processed by 8:14 AM PST. The account suspension was triggered by our vendor's compliance team due to reported email abuse originating from a compromised customer account on our platform. The immediate resolution was achieved by rapidly escalating the matter through our direct contacts and commercial legal team, who secured the reactivation of the Sparkpost account. We are implementing several key changes to address the underlying issues: 

1. Fixing the issue that caused the vendor's critical suspension warning emails to be mistakenly sent to our spam folder, ensuring immediate staff awareness in the future; 

2. Upgrading our monitoring to immediately detect if emails are queued or held by the vendor, even when our system receives a 'success' confirmation

3. Strengthening user security protocols to prevent compromised accounts from being used for large-scale abuse, including stricter review policies for suspicious user activity.

We continue to prioritize investments to scale our networking, compute, security, and other infrastructure, as well as our technical management processes that enable us to consistently deliver great experiences for our customers.

We know how critical our services are to our customers and apologize for any impact this incident may have had on you and your business. We promise that we will do everything we can to learn from this event and use it to drive improvement across our services to ensure that Smartsheet is a partner that can be counted on to deliver. We know that your success—and your continued trust in Smartsheet—depends on it.